[miningmx.com] — TRANSNET has received ringing endorsements from
Exxaro executives Sipho Nkosi and Mxolisi Mgojo for its improved operating
performance and its newfound commitment to providing the infrastructure badly
needed to boost coal railage volumes.
Speaking at a presentation of Exxaro’s results for the year to end-December in
Johannesburg on Thursday, Exxaro CEO Sipho Nkosi said, “Transnet Freight Rail [TFR]
did remarkably well in the second half of 2011 and surprised the industry with its
efficiency. We are also encouraged by what TFR has achieved so far in 2012.’
Mgojo – Exxaro’s GM for coal – said he believed TFR would deliver on plans to boost
railage capacity on the Witbank/Richards Bay coal line, as well as expand the coal
line from the Waterberg in Limpopo Province to Witbank.
Asked why, given the past decade which could be summed up as “all talk and no
action’, Nkosi replied Government was now highly motivated to deliver the required
infrastructure.
“There’s a new driving force to make things happen because of the realisation over
how South Africa lost out on the last commodities boom because of a lack of
infrastructure.
“There’s a real push from Government to do something. The President of the country
is chairing the committees that are driving the projects. Whether the country has
sufficient skills is something we will have to focus on.’
Said Mgojo: “It’s going to happen. I think we have gotten to the point where the
Waterberg has been recognised as a particularly important growth region.
“There is a serious requirement from Eskom for coal from the Waterberg, otherwise
there will be severe limitations in future on Eskom’s ability to source reasonably
priced coal for their power stations.
“Secondly, the project to supply additional water for the developments in the
Waterberg is going ahead even though Sasol’s Mafutha [coal-to-liquids] project has
been shelved, and that was originally the main justification for the water supply
project.
“We have had strategy sessions with Transnet in which we have been impressed
with the way in which [TFR CEO] Siyabonga Gama and his management team have
been open.
“We have looked at how we could join forces with the other companies operating in
the Waterberg so that the solutions will be available to all companies involved in the
Waterberg.
“On a specific Exxaro level, we used to battle to get one or two [coal export] trains
a week from TFR for the Waterberg, but today we are being offered four to six trains
a week.’
Mgojo said the expansion of the Waterberg rail link as well as the Richards Bay line –
when the Swaziland freight rail link has been built – meant that coal exports through
Richards Bay could get to 100mt/year and beyond. “That’s what our coal industry
needs to look at now.’
Exxaro boosted attributable earnings 47% to R7.6bn (2010 – 5.2bn) for financial 2011
and forecast capital expenditure would more than double to R10.9bn from the R4.9bn
invested in 2011.
